Financial Performance - Net interest income for the first half of 2022 was RMB 8,377.1 million, a decrease of 0.8% compared to RMB 8,448.6 million in the same period of 2021[38]. - Total operating income increased by 7.1% to RMB 10,407.2 million from RMB 9,717.8 million year-on-year[38]. - Net profit attributable to shareholders was RMB 2,139.2 million, reflecting a slight increase of 1.3% from RMB 2,111.6 million in the previous year[38]. - The bank's net profit attributable to shareholders for the reporting period was RMB 562.64 billion, representing a year-on-year growth of 2.5%[41]. - The net profit for the six months ended June 30, 2022, was RMB 21.392 billion, a year-on-year increase of 1.3%[45]. - The company achieved an operating income of RMB 104.072 billion, representing a year-on-year growth of 7.1%[45]. Asset and Liability Management - The bank's total assets reached RMB 1,267,299.5 million, representing a significant increase of 65.0% compared to RMB 768,233.3 million at the end of 2021[39]. - The bank's total liabilities increased to RMB 1,174,833.2 million, up 66.4% from RMB 705,853.7 million at the end of 2021[39]. - The bank's loan-to-deposit ratio was reported at 78.77%, down from 86.56% in the previous year, showing a decrease of 7.79 percentage points[39]. - The total amount of loans and advances issued by the company reached RMB 659,358.8 million, an increase of RMB 268,876 million, with a growth rate of 69.3% compared to the end of the previous year[83]. - The total amount of deposits absorbed by the company amounted to RMB 834.12 billion, an increase of RMB 385.69 billion, reflecting a growth of 86.0% due to the merger with three banks[96]. Loan Quality and Non-Performing Loans - The non-performing loan ratio improved to 1.82%, down from 2.18% at the end of the previous year[39]. - The non-performing loan (NPL) balance was RMB 11,927.6 million, with an NPL ratio of 1.82%, a decrease of 0.36 percentage points from the previous year[106]. - The personal loan NPL balance increased to RMB 5,020.4 million, resulting in an NPL ratio of 2.09%, up by 0.91 percentage points from the previous year[109]. - The bank's corporate NPL balance was RMB 6,897.2 million, with a corporate NPL ratio of 1.91%, reflecting a decrease in the ratio despite an increase in total corporate loans[108]. - The overdue loans totaled RMB 21.73 billion, representing 3.31% of the total loans, a decrease of 0.48 percentage points from the end of the previous year[118]. Capital Adequacy and Risk Management - The capital adequacy ratio decreased to 12.00% from 13.30% year-on-year, indicating a decline of 1.30 percentage points[39]. - The core Tier 1 capital adequacy ratio as of June 30, 2022, was 7.97%, down 0.73 percentage points from the end of the previous year[120]. - The bank's liquidity situation remains ample, with key liquidity regulatory indicators meeting requirements and continuously improving[181]. - The bank's operational risk management framework was strengthened through compliance education and internal control measures, enhancing the ability to identify and mitigate operational risks[179]. - The bank actively utilized foreign exchange derivatives for hedging against currency risk, maintaining stable control over exchange rate risks[185]. Strategic Initiatives and Growth - The bank successfully merged with three other banks, enhancing its capacity to support local economic development[43]. - The bank's strategic plan includes a three-year special action plan with a total of RMB 300 billion to support major projects[43]. - The bank has implemented a special credit support plan of RMB 100 billion to stabilize the economy[43]. - The company is committed to supporting the ecological protection and high-quality development of the Yellow River Basin and the rise of the central region, aligning with national strategies[125]. - The bank aims to achieve a balanced and optimized economic operation through coordinated fiscal and monetary policies, focusing on key areas such as small and micro enterprises, rural revitalization, and green low-carbon initiatives[187]. Customer and Market Development - The total number of corporate customers reached 378,100, with 63,000 effective accounts, and 15,816 new accounts opened in the first half of the year, including 2,305 new effective accounts[126]. - The total number of retail customers reached 25.0527 million, an increase of 5.7081 million from the end of the previous year[146]. - The company emphasizes a customer-centric approach, enhancing service capabilities and expanding customer bases through tailored financial services[126]. - The company launched innovative products and optimized product functions, enhancing customer experience and satisfaction[133]. - The company is focusing on risk management and compliance, aiming to prevent regional and systemic financial risks while supporting the real economy[176]. Digital Transformation and Technology - The company has implemented a digital transformation strategy to enhance risk management capabilities, including the development of an online fraud management platform[177]. - The bank established a unified market risk management framework, enhancing the identification, measurement, monitoring, and reporting processes for market risk[178]. - The remote banking customer service center handled 1.7257 million customer interactions, achieving a call connection rate of 91.09% and a customer satisfaction rate of 99.54%[162]. - The company developed a comprehensive cash management product system, enhancing liquidity management and investment services for various clients[139]. - The company is transitioning from a product-centered approach to a customer-centered approach, focusing on high-quality service and addressing customer pain points[188]. Shareholder Structure and Corporate Governance - The top ten shareholders hold a total of 8,693,621,227 shares, accounting for approximately 23.79% of the total issued ordinary shares[192]. - The company has a significant presence of state-owned enterprises among its major shareholders, indicating strong government ties[200]. - The report indicates ongoing changes in shareholder structure, with the company actively managing its equity according to regulatory requirements[200]. - The company is in the process of completing its business registration changes, which may affect shareholder dynamics in the future[195]. - The largest shareholder, Henan Investment Group Co., Ltd., holds 6.20% of the total issued ordinary shares[197].
中原银行(01216) - 2022 - 中期财报